Ashford Loans on Embassy Suites Anaheim

1 June 2005

Ashford Hospitality Trust today announced it has closed on an $8.5 million, two-year mezzanine loan
on the 375-room Embassy Suites Anaheim - South, adjacent to Disneyland(R)
Resort in Garden Grove, CA. The loan bears interest at a rate of 975 basis points over LIBOR with a
two-year term and three one-year extension options. Ashford received an
origination fee of 1%. Financing on the Embassy Suites Anaheim - South
includes a first mortgage of approximately $28.5 million by JPMorgan Chase
Bank, N.A. and the $8.5 million mezzanine loan originated by Ashford.
Ashford’s investment in the capital structure is approximately 58% to 76%
loan to value, and trailing twelve month debt service coverage is 1.18x.
The borrower is Landmark Mezzanine, LLC, and the hotel is managed by
Hilton Hotels.

Opened in 2001, the 14-story hotel has 375 rooms and 10,980 square feet of
meeting space. One of the newest hotels in the market, the Embassy Suites
Anaheim - South is adjacent to the Disneyland(R) Resort, Disney’s
California Adventure, Downtown Disney CA and the Anaheim Convention
Center. The full- service, upscale all-suites hotel is conveniently
located to other major attractions in the area and within walking distance
of several restaurants and retail centers.

Commenting on the announcement, Monty J. Bennett, President and CEO of
Ashford Hospitality Trust, stated, “The Embassy Suites Anaheim - South is
an excellent addition to our loan portfolio. With strong operating trends,
this is a high quality, stable asset located in an improving RevPAR
environment. The hotel’s all-suites offering is clearly an advantage in
the leisure segment of the Anaheim resort market. The strong debt service
coverage, experienced sponsorship and hotel management, together with our
knowledge of the Anaheim market made a very compelling investment case.” ——-